Sensata Technologies (ST) Q1 Earnings: What To Expect

Jabin Bastian /
2022/04/25 7:54 am EDT

Sensor manufacturer Sensata (NYSE:ST) will be reporting earnings tomorrow before market hours. Here's what to look for.

Last quarter Sensata reported revenues of $934.5 million, up 3.1% year on year, beating analyst revenue expectations by 1.73%. It was a slower quarter for the company, with an underwhelming revenue guidance for the next quarter and an increase in inventory levels.

Is Sensata buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Sensata's revenue to grow 1.91% year on year to $960.6 million, slowing down from the 21.7% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.76 per share.

Sensata Technologies Total Revenue

The analysts covering the company have had mixed opinions about the business heading into the earnings, with revenue estimates seeing one upward and four downward revisions over the last thirty days. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 2.54%.

Looking at Sensata's peers in the semiconductors segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. Lam Research delivered top-line growth of 5.52% year on year, missing analyst estimates by 4.33%. The stock traded down 3.68% on the results. Read our full analysis of Lam Research's results here.

Tech stocks have been under pressure since the end of last year and while some of the semiconductors stocks have fared somewhat better, they have not been spared, with share price declining 14.5% over the last month. Sensata is down 4.06% during the same time, and is heading into the earnings with analyst price target of $66.5, compared to share price of $48.59.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.